Chinese trader Evo Petrochemicals is the main exporter behind the widely discussed diesel flows from South Korea to Russia's Far East, Wood Mackenzie Maritime Research has learned.
Since July, the trading house has exported more than 81,000 metric tonnes of diesel and jet-kero from its commercial storage tanks in Ulsan, South Korea, comprising approximately 58,000 mt loaded in July and a further 23,000 mt loaded in August, including a 10,7000-mt jet-kero cargo.
The cargoes were shipped to Russia's Far East ports of Nakhodka, Vladivostok and Vostochny.
Evo, which has a trading office in Singapore, holds around 98,000 mt of storage capacity at the Ulsan Energy Terminal (UET). The diesel cargoes are believed to have been sourced from other traders and originated mainly from South Korea, Japan and China. The company has also exported diesel from UET to Japan and Hawaii.
Russia, normally a major exporter of oil products, became a net importer following sustained Ukrainian drone and missile strikes on its refining infrastructure. The attacks have reduced crude runs to around 3.6 million barrels per day — approximately 30% below pre-war levels — while waterborne diesel exports hit a record low of around 210,000 bpd in July, down roughly 70% from the 2025 average.
The damage prompted Russia to ban diesel exports in July. Under the terms of the ban, producers are restricted from exporting until 1 September, while the ban on resellers — who typically purchase cheap domestic production for export at a profit — has been extended until January 2027.
Russia has also begun importing diesel from India's Nayara Energy, in which Rosneft holds a major stake, as well as from Belarus.
The supply disruption has hit traditional buyers of Russian diesel hard. Brazil and Turkey, which had relied heavily on Russian supply, have been forced to seek alternative barrels from the US and India. The US has emerged as Brazil's leading diesel supplier in the wake of the Russian shortfall.
Russia's shift from exporter to importer has driven diesel refining margins to consecutive record highs. The front-month London Gasoil-Brent crack spread averaged around $64 per barrel in July — an all-time high — while the Asian benchmark Singapore 10-ppm gasoil crack against Dubai reached a record of approximately $65 per barrel in August, surpassing the previous highs of around $60 per barrel and $62 per barrel respectively.
The outlook for Russia's refining sector remains uncertain. While some capacity is expected to come back online, it is unclear whether Ukraine will intensify its attacks. With the peak winter diesel demand season approaching, the global market remains tight.
